Bankers Refer Unbankable Clients to Federal National

Good for the Bank and its Clients:

When a government contractor or other small business is unbankable and faces a credit decline, banks may refer to Federal National.

  • When you refer clients to Federal National, you prevent credit decline
  • Reliable and fast workout/troubled asset placement
  • Federal National is not a competitor. You retain the depository relationship.
  • You maintain a favorable relationship and access to clients who may recover or achieve bankable status.
  • Federal National’s high quality service and competitive pricing results in easy referrals and grateful customers.

Federal National’s Financing Solutions

  • Factoring: Working capital lines based upon accounts receivable 
  • Earned Unbilled Financing: Mid-cycle funding to help with payroll and vendor obligations 
  • Vendor Payment Assistance: Negotiated agreements to obtain relaxed payment terms from key vendors 
  • Financing Letters of Intent: Letters to prospects confirming Federal National financial support

Summary of Federal National’s Market

  • Commercial and Industrial (“C&I”) borrowers who are not conventionally credit worthy or who have growth opportunities that exceed their credit limit
  • Facilities as small as $50,000 and as large as $5,000,000
  • Preference for providers of “services” as opposed to “goods”
  • Clients’ customers can be businesses or government entities that are strong credits.

Government Contract Financing with

Service, Value and Trust

  • Two decades of experience in government contractor financing
  • Federal National’s expertise in the rigorous government requirements has translated into the most professional and reliable service for commercial financing to all of our clients in and outside the government arena.
  • Service:  Federal National maintains the highest standards of service. We deliver fair and professional service with prompt funding and next day settlements.  
  • Value: Our pricing is fair, plainly disclosed and competitive. Federal National’s is efficient and cost-effective, leveraging our strong balance sheet and institutional borrowing capability. That being said, we cannot compete with conventional bank terms. 
  • Trust: In business since 1992, Federal National has a proven track record of success and integrity. Our experienced management team is well known and respected among many professionals in the industry. 

State and Local Account Debtors

Our ability to work with state and local account debtors varies.  Most states have no restrictions on assignment of accounts according to UCC article 9 and we find most state and local opportunities go smoothly but our interest in working with state or local entities is also determined by:

  • Expected payment terms 
  • The paying office’s level of cooperation
  • Credit Strength

Obstacles to Obtaining Financing from Federal National

Federal National is unable to provide financing when the following things are present in the deal:

  • Construction
  • Bonding
  • Progress Payments  
  • Mechanics’ Liens
  • Sales to Large Retailers
  • Retailers
  • Trucking/Transportation
Mark Moore, John Marshall Bank
Joe Sillay speaks with Mark Moore, EVP, John Marshall Bank about his experience with Federal National. watch the video

Unbankable

Federal National Market Preferences

Federal National prefers services that are fundamentally time and material based.  We like to know that the account debtor (the client’s customer) has received economic value for the billed service.

The majority of our business is white-collar staffing in nature. They include:

  • Engineering services
  • Communication installations, maintenance and service
  • IT consulting, equipment sales, installation and maintenance
  • Medical staffing

Examples of other services include:

  • Janitorial services
  • Grounds maintenance
  • Security guard services
  • Food services

We will finance products of various kinds but they either need to be fairly simple and/or have fairly explicit inspection sign-off by the account debtor. We usually avoid situations with important contingent liability or the potential for costly returns.